It's sufficiently clear and I still don't see why I would need stereo separation from a 4" device. If there were stereo speakers, they would be separated by 1". Put your two home speakers together separated by 1" and tell me if stereo sound helps much there.
1. Try watching some stereo YouTube clips on, say, the N7.2013. You'll see the advantages of normal (non-widened) stereo speakers.
2. try playing some tunes on the Nokia N95 (or any other, comparable Nokia handset with quality speakers and their custom stereo widener) with widened stereo. It's just far more enjoyable to listen to some tunes that way than without stereo widening (let alone mono) - the entire room gets filled by the stereo music.